The Group Managing Director and Chief Executive Officer of United Bank for Africa (UBA), Mr Oliver Alawuba, has described the Pan-African Payment and Settlement System (PAPSS) as Africa’s strategic response to global tariff challenges and rising foreign exchange pressures. He made this known on Wednesday during the official launch of the Nigeria-Ghana corridor of the PAPSS and UBA partnership.
The partnership enables UBA’s Artificial Intelligence-powered chatbot, LEO, to carry out cross-border payment transactions in local currencies, providing customers with a seamless and instant remittance experience. This move positions UBA as the first bank on the continent to offer cross-border payments via AI, marking a significant leap in digital banking innovation in Africa.
Mr Alawuba explained that the PAPSS initiative, developed by the African Export-Import Bank (Afreximbank), allows for real-time transactions across African countries using local currencies. This eliminates the need for dollar-based charges and reduces pressure on Africa’s fragile foreign exchange markets.
“This is the future of Africa that we are building,” he said. “With all the global tariff issues affecting trade, this is Africa’s answer. All transactions are done using African currencies. We no longer need to pay charges in dollars, which adds pressure to the forex market and fuels inflation in many countries.”
Alawuba said the project is a bold step in promoting intra-African trade and financial independence. “Intra-African trade remains extremely low, and this product is timely. For too long, we have done business primarily with the Western world. Now is the time to trade more with each other. The global tariff environment is sending us a clear message — we must build solutions that work for Africa.”
The PAPSS system, he noted, will help African businesses save on conversion and transaction costs, as they will no longer need to convert currencies through the US dollar or other foreign denominations to make payments within the continent.
Also speaking at the event, the Chief Executive Officer of PAPSS, Mr Mike Ogbalu III, praised UBA for championing the integration of African financial services and for being at the forefront of banking innovation.
“UBA is a pioneer in many areas, and today we are celebrating another first. This partnership isn’t by accident; it reflects UBA’s commitment to building meaningful connections across Africa,” Ogbalu said.
He described PAPSS as a robust financial market infrastructure designed to support secure and instant cross-border payments using local currencies. “Even though it is African-built, it is world-class and based on global financial infrastructure principles,” he added.
Earlier in his welcome remarks, UBA’s Directorate Head of Digital and Retail Banking, Mr Shamsideen Fashola, said the partnership goes beyond digital transformation. He described it as a mission to support families and small businesses across Africa.
“This collaboration is more than a technological upgrade. It simplifies payments, unlocks new economic opportunities, and aligns with UBA’s goal to empower customers. Early adoption figures from the Ghana-Nigeria corridor are very encouraging. We are committed to creating more awareness and bringing this value to all our markets,” Fashola stated.
PAPSS, developed in partnership with the African Continental Free Trade Area (AfCFTA) Secretariat, serves as a payment infrastructure that enables secure and instant settlements of cross-border transactions in African currencies. It was designed to facilitate trade among African countries by eliminating third-party currencies, especially the US dollar and euro, from intra-African transactions.
The introduction of PAPSS also plays a critical role in achieving the broader objectives of the AfCFTA agreement, which aims to deepen economic integration and increase intra-African trade by up to 52% by 2030.
The UBA–PAPSS partnership, especially with the AI-powered LEO chatbot as a payment channel, is expected to attract more users from across the continent, particularly among youth and tech-savvy entrepreneurs who seek fast, secure, and convenient payment solutions.
UBA operates in over 20 African countries and is one of the leading Pan-African banks supporting the digital transformation of the continent’s financial ecosystem.
As the rollout continues, stakeholders in the banking and fintech sectors are watching closely, with many seeing the move as a potential game changer for small businesses, diaspora remittances, and intra-African commerce.
